A NEW law passed slaps a 3% fee on vacation rentals booked through websites like Airbnb and Vrbo.
The tax was narrowly passed in a Jersey Shore town after legislators claimed that more resources were being used due to more visitors.
Airbnb and other online booking agencies will now face a 3% tax[/caption]
For many vacationers, the change was unwanted[/caption]
One city council member argued that more visitors leads to more money spent by the city[/caption]
Ocean City, New Jersey, is adding the tax as consumer demand goes up for the shore town, according to the vacation spot’s City Council.
The vote was 4-3, passing by a slim majority.
“It’s not astronomical,” Dave Winslow, one of the council members, said, according to WPVI-TV.
“Say on a $2,500 rental, it’s only $75. Most people are not going to leave Ocean City for $75.”
The numbers of rental bookings continue to rise, especially for weekends where some beach houses allow for single-night stays.
One council member, Jody Levchuk, said that as more families visit, more resources are used.
“It’s getting too expensive across the board,” Bobby Mesmer, a New Jersey resident, told the station.
“The rentals are already expensive enough.”
The city said that the new tax would go into effect 90 days after its passing.
Last year, the council tried to pass a similar tax, but the move was squashed.
This time around, hotels and motels were excluded – one of the only ways families can be spared from the tax increase.
If vacationers book their stay through local realtors, the fee would not apply, too.
Over $60 million Ocean City rentals were booked through online agencies just last year alone, wrote OCNJ Daily.
“We keep taxing and taxing and taxing,” Keith Hartzell, another city council member who voted against the new law, said, according to the outlet.
Airbnb’s full statement
Alain Xiong-Calmes, Public Policy Manager at Airbnb, told the US Sun:
“Short-term rentals are an important part of New Jersey’s economy, generating nearly $1.3 billion in economic activity for the state and driving guest spending in local communities, particularly in places with limited affordable hotel options. In Ocean City, where most guests come from within the New Jersey region, this short-term rental tax risks pricing out families seeking affordable stays with access to the coast and threatens the local businesses and attractions that rely on visitor spending from short-term rentals.”
“It never ends.”
Airbnb said: “In Ocean City, where most guests come from within the New Jersey region, this short-term rental tax risks pricing out families seeking affordable stays.”
Vrbo did not immediately respond for comment.
Residents went on social media to express their frustration with the new fee.
“My family has been enjoying OC for years but you have really priced yourself out of the market for a family vacation. We went down for the day last week and there was so much parking,” wrote one Facebook user.
“Obviously, people are not renting this year including us.”
“Stop spending your hard earned money in OC,” another commented.
“Plenty of other places to vacation.”
Ocean City, New Jersey has become a popular tourist spot due to its beach and boardwalk[/caption]
